The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Ananda Divine Developers, a step-down company of NCR-based realty firm ATS Infrastructure.

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A two-member Delhi-based Principal bench of the NCLT had on March 25 admitted a plea filed by ICICI Prudential Venture, claiming a due of Rs 25 crore.

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The insolvency tribunal has appointed Harish Taneja as the Interim Resolution Professional to take over the management of the company while suspending the board of Ananda Divine Developers.

Meanwhile, ATS Infrastructure in a statement said it has resolved the dispute with ICICI Prudential Venture and will be filing a settlement soon.

"We have received a copy of the order and we are in the middle of studying the same," ATS Group CMD Getamber Anand said, adding "We have mutually closed this dispute with ICICI Prudential Venture and will be filing a settlement soon".

In its 20-page-long order, the NCLT observed that the realty firm is liable to pay ICICI Prudential Venture, the financial creditor, a total outstanding sum of Rs 25.46 crore as of November 20, 2020, which includes the default IRR (Internal Rate of Return).

"Consequently, by not paying the outstanding amount, which has become due and payable, the corporate debtor has committed an event of default under the provision of the Investment Agreement and default under the provisions of the Code," said the bench consisting of President R Sudhakar and A K Srivastava.

The NCLT also observed that in the present case, Ananda Divine has not filed any reply or written submissions till now.

"However, in view of the debt and default clearly mentioned in part IV of the application under section 7, this bench is inclined to admit this petition," the NCLT said in its order passed on March 25, 2022.

Under Section 7 of the Insolvency and Bankruptcy Code (IBC), a financial creditor can get insolvency proceedings initiated against the corporate debtor concerned.

On July 24, 2014, Ananda Divine Developers along with its promoter ATS Infrastructure and Getamber Anand, also a promoter and personal guarantor, had executed an investment agreement, pursuant to which ICICI

Prudential Venture invested Rs 75 crore by subscribing 75 lakh debentures having a face value of Rs 100.

The debenture and obligations were secured with a mortgage over a 14 acre land of ATS Triumph Land situated at sector 104 in Gurgaon.

The debenture carried an interest rate of 14 per cent per annum and was required to be repaid by September 30, 2018.

Ananda Divine Developers paid the first instalment of Rs 92.50 crore on December 30, 2107, towards the principal amount of Rs 65.62 crore.

However, a default had occurred for the remaining debentures of 9.37 crore on March 31, 2018, and a notice was issued.

Again another notice was issued on December 11, 2019, stating that if the realty firm fails to make payment within the given timeline, then it shall be liable to make payment of the outstanding subscription amount along with a default internal run rate (IRR) of 30 per cent.

Later a notice was issued on October 26, 2020, wherein the financial creditor claimed a due of Rs 25.16 crore.

After not getting paid, the financial creditor moved to the NCLT.

According to the company, the related project is complete and handed over.

"The amount under consideration is a very small sum and the related project is completed and handed over. This will have no bearing on our other projects," Anand said.